Financial literacy and its influence on internet banking behavior

Andreou, Panayiotis C.; Anyfantaki, Sofia

doi:10.1016/j.emj.2020.12.001

Cited by 53 publications

(65 citation statements)

References 40 publications

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“…Third, this study identifies the role of financial literacy on users’ behavior in the context of IWM. Previous research on users’ financial behavior emphasizes the differences in financial literacy [ 25 , 62 ]. In the context of IWM, how financial literacy plays a role in the impact of herding and perceived value on user behavior is still unknown.…”

Section: Discussionmentioning

confidence: 99%

“…It measures the financial knowledge reserve and the ability to use financial knowledge to solve practical financial problems [ 62 ]. Investors with high financial literacy prefer complex or high-yield financial products, such as stock trusts or futures [ 25 ]. However, investors with low financial literacy tend to rely too much on the advice of relatives and friends rather than their own judgment before making financial decisions.…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

“…The improvement of financial literacy is conducive to promoting individuals to minimize the possibility of being misled and making wise financial decisions [ 62 ]. In the context of IWM, users with high financial literacy can identify and judge the financial products and asset allocation provided by IWM services through their own financial knowledge and technology, improving the security of investment to a certain extent [ 25 ]. Users with low financial literacy will rely more on products and services recommended by IWM services and are more influenced by the decisions of other users.…”

Section: Research Model and Hypothesesmentioning

confidence: 99%

“…In addition, different people, based on their unique characteristics, exhibit different degrees of herding behavior [ 18 ]. Past studies have shown that financial literacy is an important user attribute related to decision-making behavior in both traditional and electronic finance [ 25 , 26 ]. Users with high financial literacy tend to choose complex or high-risk financial products by themselves, while users with low financial literacy tend to rely too much on others’ advice when making investment decisions [ 27 ].…”

Section: Introductionmentioning

confidence: 99%

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What influences users’ continuance intention of internet wealth management services? A perspective from network externalities and herding

Kang

Shao²,

Chen³

2022

Electron Commer Res

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In recent years, more and more wealth management platforms have adopted Internet wealth management (IWM) services to attract users. Due to the intensive competition and low switching costs, it is essential for platforms to enhance users’ willingness to continue using IWM services. Comprehensively considering the role of network externalities and herding, this study identified the factors affecting users’ continuous intention of IWM service. The research model was tested using survey data collected from 637 respondents concerning their perceptions of IWM services. The results indicate that network externalities (network size, perceived complementarity, network strength) have significant impact on herding and perceived value, thus affecting continuance intention. Furthermore, herding and perceived value have a greater impact on continuance intention of users with low financial literacy than that of users with high financial literacy. This study could benefit wealth management platforms and researchers seeking to improve the retention rates of IWM users.

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Section: Discussionmentioning

confidence: 99%

Section: Research Model and Hypothesesmentioning

confidence: 99%

Section: Research Model and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

What influences users’ continuance intention of internet wealth management services? A perspective from network externalities and herding

Kang

Shao²,

Chen³

2022

Electron Commer Res

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“…All the previous studies examined the usage of the internet and mobile banking based on consumers' intention to use the delivery channels. Consumers’ level of education, income (Zagalaz Jiménez and Aguiar Díaz 2019 ), financial literacy (Andreou and Anyfantaki 2021 ) and the internet banking interface design (Sharma et al 2020 ) were identified intentions to adopt internet banking. Perceived usefulness, design of the mobile banking application interface, customer experience (Chaouali et al 2019 ), digital divide (Klyton et al 2021 ), digital literacy and awareness of the benefits of use (Elhajjar and Ouaida 2019 ) were intentions to adopt mobile banking.…”

Section: Cashless Payment Internet Banking and Mobile Bankingmentioning

confidence: 99%

The effect of cashless payments on the internet and mobile banking

Ong

Chong

2022

J Financ Serv Mark

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Some of the problems of cash transactions were the inconvenience of handling cash and the limited availability of banking services to facilitate cash withdrawals. The purpose of this paper is to examine the impact of cashless payments on the usage of the internet and mobile banking services in twofolds. First, the Wald test was applied to determine the short-run causal effect of the diffusion from cash to cashless payment on the internet and mobile banking. Second, the autoregressive distributed lag (ARDL) bounds test was employed to determine the long-run effect of cashless payments on the internet and mobile banking. The novelty of this study is threefold. First, this study employed the total value of cashless payments transacted per month data that were previously unavailable for time series analysis. Second, unlike studies on the intention to adopt cashless payments, internet and mobile banking, this study used data of actual transactions paid by a consumer. Third, this study established that the internet and mobile banking were delivery channels for cashless payments.

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